Updated · Mike Certo, NMLS #260555
Massachusetts Down Payment Assistance Programs Guide
In a state where the median single-family runs about $715,000, the down payment is the wall most first-time buyers hit. MassHousing answers it with a second mortgage that layers behind your main loan: up to $30,000 as a 0% deferred second with no payments, or up to $25,000 as an amortizing second you pay down over 15 years. This page takes both apart, the mechanics, the income limits, and how each one stacks on your first mortgage.
How does MassHousing down payment assistance actually work?
The assistance is never its own loan standing alone. MassHousing places it as a second mortgage behind your first, so it fills the down payment and closing gap while the first loan does the heavy lifting. You choose one of two shapes. The first is a deferred second worth up to $30,000, quiet and payment-free until you leave the loan. The second is an amortizing second worth up to $25,000 that you pay down on a set schedule. You pick one path per purchase, not both.
What does the $30,000 deferred second give you?
This is the option most buyers ask about first, and the reason is cash flow. The deferred second lends up to $30,000 at 0% interest with no monthly payment attached. The balance simply sits behind your first mortgage. Nothing comes due while you live there and keep the loan. The full $30,000 is available statewide, from Boston to the Berkshires, so where you buy changes your income limit but not the size of the help. For a buyer stretching to clear the down payment in a pricey market, keeping that second payment-free is the whole point.
How is the $25,000 amortizing second different?
The amortizing second caps a bit lower, at up to $25,000, and it behaves the opposite way. Instead of deferring, you repay it over 180 months, a 15-year term, on a monthly schedule. MassHousing runs it in two flavors: one at 2% and one at 3%, which are the terms on the assistance second itself. So you take on a real second payment now, but the balance steadily disappears rather than waiting as a lump behind your first loan. Some buyers prefer that, especially if they dislike carrying a large deferred lien on title.
The $30,000 deferred vs the $25,000 amortizing second, side by side
Both fill the same down payment gap in opposite ways. One stays silent until you leave the loan; the other pays down from day one. This is the comparison Mike walks through on nearly every MassHousing call.
| Feature | Deferred second (Option 1) | Amortizing second (Options 2 & 3) |
|---|---|---|
| Maximum amount | Up to $30,000 | Up to $25,000 |
| Rate on the second | 0%, deferred | 2% or 3%, amortizing |
| Monthly payment | None | Yes, over 180 months (15 years) |
| How it ends | Due on sale, refinance, or payoff | Paid down over the 15-year term |
| Availability | $30,000 in every city and town | Statewide |
| Structure | Second mortgage behind your first | Second mortgage behind your first |
MassHousing down payment assistance, verified August 2026. MassHousing has run a limited-time enhanced option, up to $25,000 at 0% deferred for certain rate-lock windows; those windows change and can end early, so confirm what is open at MassHousing before you plan around it.
What are the income limits, and why do they move by town?
The income test is where a high-cost state gets interesting, because MassHousing sets the ceiling by where you buy. In Boston and the 26 designated Gateway Cities, places like Worcester, Springfield, Lowell, Brockton, New Bedford, Fall River, and Lynn, you can earn up to 135% of area median income. In the rest of the state the ceiling is 100% of area median income. At the top end the limit reaches roughly $209,250, though that figure resets annually and depends on household size. The practical takeaway: a Boston or Gateway City buyer has more room on income than a buyer in a smaller suburb, so check your exact community.
How does the assistance layer with your first mortgage?
The assistance second sits on top; the first mortgage decides most of the terms. MassHousing down payment assistance is designed to ride behind a MassHousing first mortgage, and the credit floor for the assistance runs 640 to 700 depending on the loan and the property. FHA is the usual base when credit is thinner, with a 2026 Massachusetts floor of $541,287 in the western counties and a limit up to $962,550 in the Boston-area counties. Conventional fits once your score clears the mid-600s, since the mortgage insurance cancels at 20% equity. VA is zero down for eligible veterans.
What triggers repayment on the assistance second?
It depends on which option you took. The deferred $30,000 second comes due on three events: selling the home, refinancing the first mortgage, or paying it off. Until one of those happens, there is no payment and no interest, the balance just waits. The amortizing $25,000 second is different: you pay it down monthly from the start over the 15-year term, so its remaining balance is whatever is left when you sell or refinance. Neither option is forgiven the way a K-style program in some states is, so plan on repaying MassHousing help at some point, either gradually or at exit.
Which option fits which buyer?
If your budget is tight month to month and you want the largest help with no added payment, the deferred $30,000 second is usually the answer, and it is the same $30,000 whether you buy in Cambridge or in Pittsfield. If you would rather chip the balance down and not carry a big deferred lien to the closing table on your next move, the amortizing $25,000 second is the cleaner fit, even though it caps lower and adds a monthly payment. Both are second mortgages behind your first, and you take one per purchase. A buyer weighing this against a ONE Mortgage first loan should price both paths together, which is covered on the first-time buyer guide.
Related Massachusetts guides
- Massachusetts first-time home buyer guide
- Massachusetts transfer tax and closing costs
- All Massachusetts loan programs
- Talk to Mike about your scenario
Massachusetts down payment assistance FAQ
How much down payment help does MassHousing offer?
MassHousing down payment assistance offers up to $30,000 as a 0% deferred second mortgage under its first option, and up to $25,000 as an amortizing second under its other two options. The $30,000 amount is the same in every city and town in Massachusetts. It is a second mortgage layered behind your first loan to cover the down payment and closing costs, not a standalone grant.
What is the difference between the $30,000 deferred second and the $25,000 amortizing second?
The $30,000 deferred second carries a 0% rate and no monthly payment; the full balance sits quietly until you sell, refinance, or pay off the first mortgage. The $25,000 amortizing second is paid back on a schedule over 180 months, 15 years, at 2% under one option and 3% under the other. The deferred choice keeps your monthly payment lower now; the amortizing choice clears the balance over time.
When do you repay MassHousing down payment assistance?
For the deferred $30,000 second, the balance comes due when you sell the home, refinance the first mortgage, or pay it off; until one of those happens there is no payment and no interest. For the amortizing $25,000 second, you make a monthly payment from the start over a 15-year term, so it is paid down steadily rather than sitting deferred. Neither is forgiven the way some other states' programs are.
What are the income limits for MassHousing down payment assistance?
Income limits are set by where you buy. In Boston and the 26 designated Gateway Cities you can earn up to 135% of area median income, and in the rest of the state up to 100% of area median income. The top figure reaches roughly $209,250 in the highest-cost areas, though that number moves each year. Because the limit depends on your community and household size, confirm your exact figure at MassHousing.
What credit score does MassHousing down payment assistance require?
MassHousing down payment assistance generally runs a 640 to 700 minimum middle score, depending on the first-mortgage type and the property. FHA on its own can accept lower scores, but once you layer the state second the credit bar moves up. If your score sits just under the line, ask Mike what would move it over before you apply, since a small change can open the assistance up.
Does MassHousing assistance work with ONE Mortgage?
MassHousing down payment assistance is built to layer behind a MassHousing first mortgage, while ONE Mortgage is a separate first loan run by the Massachusetts Housing Partnership. They are different products from different agencies, so they are not automatically combined. The practical move is to price both paths, a MassHousing first with the assistance second on top, or a ONE Mortgage on its own, and compare the cash and the monthly on each.
Is MassDREAMS still available?
No. MassDREAMS committed all of its funds and is closed. It was a first-time-buyer grant for communities hit hardest by the pandemic, and it was never a veterans program, which is a common mix-up; the veteran product is Operation Welcome Home. For down payment help now, most Massachusetts buyers use MassHousing down payment assistance, the deferred or amortizing second described on this page.